The Doubin Law
All you need to know about the French “Doubin Law”.
Genesis of the Doubin Law
The Doubin Law was passed on December 31, 1989, and its implementing decree was published on April 1, 1991.
Codified in articles L.330-3 and R.330-1 of the French Commercial Code, it is one of the major texts governing the signing of franchise and brand licensing agreements.
What obligations does the Doubin Law impose?
The law specifies the pre-contractual information to be provided by networks wishing to allow a third-party using a trade name, brand or brand name, while requiring an exclusive or quasi-exclusive commitment.
This obligation was designed to enable everyone to enter into a franchise or license contract with full knowledge.
In practice, this obligation takes the form of a pre-contractual information document, also known as “franchise disclosure document” or “FDD”.
Note that this obligation does not apply exclusively to franchising, but also to brand licensing and commission affiliation, for example.
What information must be disclosed?
In particular, the FDD must specify the history and experience of the company, the state and development prospects of the market concerned, the size of the network of operators, the duration, conditions of renewal, termination and assignment of the contract, and the scope of exclusive rights.
What is the deadline?
The FDD (as well as all information enabling the parties to have access to truthful information) must be communicated at least twenty days before the contract is signed.
The FDD must also be given to the prospective franchisee / licensee at least twenty days before any investment in connection with the project: it is therefore not possible for a franchisor to collect a reservation fee or an entry fee if a FDD has not been provided at least twenty days in advance.